Vertical: Banking; Enterprise Software; Insurance; Investors/VC/PE; Peer-to-Peer Lending
Bricknode has two legs to stand on. The first leg is the platform leg and the other is our own verticals such as Bricknode Broker, Bricknode Advisor, Bricknode Fund Manager and other specialised products for a certain customer group that we launch.
Introduction for the UK market
In the introduction to the UK market Bricknode has two legs to stand on. The first leg is the platform leg and the other is our own verticals such as Bricknode Broker, Bricknode Advisor, Bricknode Fund Manager and other specialised products for a certain customer group that we launch.
In Sweden Bricknode has 20 Securities companies as customers that are authorized by Finansinspektionen (FI, the Swedish FCA) to engage in securities trading. They use Bricknode Financial System (BFS), which is a total solution for trading- and securities administration to manage the backoffice, order management, advisory/partners and insurance. They can either trade using their own book (take risk) or trading against counterparties. Bricknode also has customers who only have a discretionary mandate, i.e. they only have a license with the FI to manage clientsÛª investments in external trading accounts. Portfolio managers/advisors does not count as Securities companies. It is also common that Securities companies offer discretionary portfolio management.
What is unique with BFS
What distinguishes BFS from other suppliers are:
Û¢ BFS is a cloud-based service.
Û¢ Open API (like Salesforce), making it possible for customers to build their own customized applications against BFS by an independent consultant or through our partners.
Û¢ Bricknode Marketplace, where new apps are continuously published by Bricknode or by partners (such as connections to MFEX and Nasdaq for trading funds).
Û¢ A price model that is based on enablements `Pay for what you use with no notice periodså«, which is public on our website (http://www.bricknode.com/pricing/).
Û¢ Online registration where the customer gets a BFS instance in 1-2 days
Customer Segment 1; Securities companies/brokers
These companies usually handle their backoffice work in-house or they outsource this service to external partners and we define them as Securities companies or Brokers.
If it is a major broker that wants to become a customer to Bricknode it is likely that they demand the service ÛÏBFS for EnterpriseÛ, see; http://www.bricknode.com/pricing/.
Brokers often have complex IT environments and generally require more education and guidance with the introduction of BFS. The internal process (not Bricknodes process) for implementing a new system at a broker can be long, it takes a lot of internal resources for implementing and testing a new system in conjunction with legacy systems. Brokers also have regulatory requirements like tax reporting, MiFID regulations (EU) etc.
However, more and more customers realize the benefits of a cloud service and this should benefit Bricknode on the UK market, as well as our price model that differs significantly compared to our competitors.
Customer Segment 2; Portfolio Managers/Advisors
The portfolio managers/advisors are authorized by FI to engage in securities trading, but only have permission to engage in discretionary management on behalf of the customer. The advisor has a mandate to trade on behalf of its clients at banks/brokers such as (in Sweden), Avanza (https://www.avanza.se) and Nordnet (https://www.nordnet.se). An advisor does not take any assets on deposit and only wants to mirror the holdings of their customers within BFS to reflect what the customer has at the bank/broker where the account is kept. The advisor could also use BFS to generate and send orders to the bank/broker for execution on behalf of each client.
Because Bricknode has an open API, there are no limits on mirroring customerså« holdings from financial institutions in the UK.
For the introduction of the UK market this customer segment is initially the most interesting. The reason for this is that the segment has far more prospects and can get started very quickly with BFS compared to brokers. There is also a great need within the target group to use a qualified system that can handle; customersÛª holdings and deposits, as well as to make allocations of the customersÛª portfolios automatically. Another benefit is that they donå«t have the same regulatory requirements as a broker.
When an advisor uses BFS they get their own customer front which strengthens their customerÛªs loyalty and gives them an opportunity for growth. When the advisorså« clients logs on to the customer front end they see all their holdings mirrored in one place. With Bricknode Marketplace the advisors can get access to services (add-ons) that will help them customize BFS according to their needs.
Customers in this segment are mostly smaller companies, who usually are not able to invest in qualified systems like BFS
Bricknode platform; Fintech companies and Partners
A part of Bricknode ecosystem is based on getting potential partners to become interested in developing apps using our API, which then can be published on Bricknode Marketplace. In the current situation, we have several integration partners in BFS, for example; Swedbank, MFEX, NFM, Interactive Brokers, Avanza, Bloomberg, Yahoo, SEB, Nordnet, Ekopost, Morningstar, Instantor, Nordea etc.
Our ambition is to continuously expand the number of partners, to generate added value for customers using BFS. Bricknode also targets business and IT consultants who wants to become BFS resellers or BFS consultants (BFS experts).
For FinTech companies that wants to create new financial services and who wants to use BFS as a core system, Bricknode has created a Startup Sponsorship Program.
Examples of successful partnerships are Pensiono (http://www.pensiono.se/) and Lendysoft (http://www.lendysoft.com/). Pensiono is a newly established insurance company, where the Bricknode platform enables Pensiono to offer new competitive services on the Swedish market. It is very rare that a new insurance company is established in Sweden due to comprehensive regulations and fund raising.
Lendysoft has built a loan management software for traditional lending and peer-to-peer lending with BFS as a core component, to manage accounts, transactions etc.